
GOVERNMENTAL 

WAR AGENCIES 

AFFECTING BUSINESS 




NATIONAL ASSOCIATION OF MANUFACTURERS 

30 CHURCH STREET, NEW YORK CITY 

Washington, D. C. Office 

UNION TRUST BUILDING 



AFFECTING BUSINESS 



PREPARED FOR THE 

NATIONAL ASSOCIATION OF MANUFACTURERS 



BY ,-"- 

JAMES A, EMERY 
NATHAN B. WILLIAMS 



1918 



Issued from 

THE SECRETARY'S OFFICE 

30 CHURCH STREET, NEW YORK CITY 



H GSS" 






S 



Copyright. 1918 



©CI.A4815.i8 



m 26 i^»B 



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Introduction 

The war needs of the Government have developed a large 
volume of new legislation and many new governmental agencies 
have been set up, as well as extensions of the activities of regular 
governmental departments, which directly affect American 
business. 

This publication is designed to supply briefly accurate informa- 
tion concerning the jurisdiction and activities of these govern- 
mental agencies, together with references to the laws under which 
they are conducted. It is not designed to be comprehensive, but 
it is intended to supply sufficient facts and information to put a 
reasonably prudent man upon inquiry, and at the same time give 
him accurate data which will direct him to the proper sources of 
knowledge. 

The National Association of Manufacturers is cooperating to 
its fullest extent in aid of its members and American business to 
meet present unusual demands in the most effective manner 
possible. 

The offices of the Association, both in New York City and in 
Washington, D. C, are freely at the command of members, and 
owing to their daily contact with the problems constantly arising, 
are in position to supply information and advice with the least 
possible delay. 

January 1918. 





CONSULT THE 








FOREIGN TRADE DEPARTMENT 








OF THE N. A. 


M. 








30 Church Street, New York City. 






whenever in need of information, 


advice or service 


with 


respect 


to problems arising from 


governmental 


or 


other 


action 


affecting foreign commerce. 









Digitized by the Internet Archive 
^ in 2011 with funding from 
The Library of Congress 



http://www.archive.org/details/governmentalwaraOOemer 



Contents 

PAGE 

War Trade Board : 

Executive Orders and Proclamations y 

Main Lines of Activity 7 

Exports _ 7 

Imports 7 

Trading with the Enemy 11 

Personnel 14 

Bureau of the War Trade Board 14 

Branch Offices 14 

War Trade Council 14 

Alien Property Custodian 15 

Tariff Commission 16 

Federal Trade Commission : 

Licensed Use of Patents 17 

Cost Investigations 17 

Secretary of the Treasury: 

Director General of Railroads 18 

Insurance 23 

Foreign Insurance Companies 23 

Gold and Silver Exports 24 

Censorship 24 

Censorship Board 24 

Department of Justice : 

Registration of Enemy Aliens 25 

Aircraft Board 26 

5 



PAGE 

National Advisory Committee for Aeronautics 27 

Shipping Board 27 

Department of Labor 27 

Fuel Administration 27 

Food Administration '. 30 

Council of National Defense: 

Advisory Commission 30 

Activities 30 

Committees of the Council 31 

Present Organization 31 

War Industries Board 31 

Industrial Resources Division 36 

Essentials and Non-Essentials 36 

Priorities Committee 36 

Priority in Transportation 36 

Commercial Economy Board 37 

Naval Consulting Board 38 

National Research Council 38 

Bureau of Mines 38 

Government Purchasing Offices in Washington. 39 



War Trade Board 

The War Trade Board was constituted by executive order, 
signed by the President on October 12, 1917. 

Executive Orders and Proclamations. Previous and sup- 
plemental executive orders outlining the functions of the Board, 
which executive orders have the force of law, were made under 
date of June 22, 1917 ; July 9, 1917 ; August 21, 1917 ; October 12, 
1917, and November 28, 1917. 

These orders are issued by virtue of the Espionage Law (Title 
7), approved June 15, 1917, and Trading with the Enemy Law, 
approved October 6, 1917. A pamphlet on Trading with the 
Enemy Law has been distributed by the Association to its 
members. 

Main Lines of Activity. The Board sits daily, negotiates 
with foreign governments, decides questions of policy which 
arise from time to time, and gives instructions to the Bureau of 
Exports. It is enforcing the authority, covering the control of 
exports and imports, conferred by the Espionage and the Trading 
with the Enemy Laws. The President has issued proclamations 
governing the restrictions of exports and imports and providing 
a system of licenses. The War Trade Board has instructed 
shippers concerning the licenses, and is directly in contact with 
American business as it relates to foreign trade. 

Only with the consent of the Board may agents of the enemy 
countries do business in the United States. Enemy companies 
also may not change the names they used at the beginning of the 
war without special license. It has the executive administration 
of all instructions issued by the President regarding exports and 
embargoes, and, in conjunction with the War Trade Council, is 
engaged in conserving the food supply of the country and reg- 
ulating exports so that the products of America will not reach 
the enemy. 

Exports. The Board has published a long list of articles 
which may not be exported without license previously secured 
from the War Trade Board. Such list is subject to change and 
can be secured from the War Trade Board. 

Imports. Effective December 10, pursuant to proclamation 
of the President, made November 28, 1917, which proclamation 
restricted a long list of articles which may not be imported except 



on license previously obtained from the Board, the application 
for which is to be made out in duplicate on blanks to be secured 
from the -Bureau of Imports, War Trade Board, Bond Building, 
Washington, D. C. 

Announcing its policy with respect to the enforcement of this 
proclamation, the Board has issued the following statement : 

"For some months, exports from the United States have been con- 
trolled by the War Trade Board, successor to the Exports Administrative 
Board, the agency originally empowered to control by a system of licensing 
exports from the United States. The War Trade Board is now vested 
with similar control of the principal items of importation into the United 
States. 

"Title seven of the 'Espionage Act' gave to the President the power, 
when the public safety so required, to control exports from the United 
States. Under the power so conferred the President, by proclamation of 
July 9, 1917, and August 27, 1917, established control over exports, and 
this is successfully accomplishing two important results : First, it is con- 
serving for our own and the use of those countries associated with us in 
the war such of the bountiful resources of the United States as need to be" 
conserved ; and second, it prevents supplies from leaving our shores for 
the aid and comfort of the enemy. 

"Section II of the 'Trading with the Enemy Act' conferred upon the 
President a like power to control imports into the United States. Such 
control of imports was made effective by the Allied Governments many 
months ago, the necessity therefor , having become obvious if the resources 
of each were to be most effectively utilized for national and international 
demands. With the organization of the Bureau of Imports of the War 
Trade Board the reciuisite machinery has been supplied for increasing the 
importation of certain indispensable commodities produced abroad. The 
supply now coming forward to this country is limited by reason of export 
embargoes imposed by foreign powers controlling the territory in which 
such materials originate. Such action was made necessary because of 
interference with normal production, as well as the extraordinary con- 
sumption occasioned by the war. Among notable examples of such mate- 
rials may be mentioned tin, wool, rubber, ferromanganese, leather, flax, 
and jute. 

"Prior to the enactment of this statute there was no governmental 
agency, especially designated to deal with the proper officials of other 
Governments in order to procure the release of commodities required by 
the United States and which had been embargoed by other Governments. 
The governmental supervision of imports makes possible a more effective 
scheme of reciprocitj' and brings about a closer unity of the countries 
associated together in the war. Heretofore, in the absence of a respon- 
.sible agency with which to deal, the Allied Governments were not in a posi- 
tion to know that all products exported by them to the United States would 
be utilized in a manner most conducive to the success of the great common 
enterprise. With the extension of scope in the operation of the War 
Trade Board there is at hand a dependable medium through which the 



Allies will be enabled more effectively to express their willingness to 
reciprocate, by making liberal shipments of commodities much needed by 
this country in exchange for the vast quantities of vital supplies which 
are going forward to them in an unending stream. 

"The various trades* dealing in the embargoed commodities have been 
or are being so organized that the total requirements of each industry can 
be accurately surveyed, the non-essential uses of any material eliminated, 
and a system of control provided which will insure the equitable distribu- 
tion of the imported commodity and its consumption in the most essential 
products. At present all of these materials are permitted by foreign 
Governments to come into this country only under guarantees that they 
will not be re-exported except under specified restrictions ; that they will 
not be used in trading directly or indirectly with the enemy ; and that no 
purchase of any such material has been made as a speculation. At present 
these guarantees are given to the consul or other representative of the 
Allied Governments in this country, but this method of handling imports 
has resulted in some dissatisfaction on the part of American business men 
affected thereby. 

"Under the authority conferred upon the President by the 'Trading 
with the Enemy Act' the issuance of a proclamation requiring a license 
for the importation of these various articles puts into effect a plan whereby 
the giving of guarantees by individual parties to a foreign Government 
is obviated, and American individuals or firms will henceforth deal directly 
with their own Government in connection with their importations. 

"By virtue of this cooperation, supervision, and control on the part 
of the United States Government it is believed there will be forthcoming 
larger quantities of these various commodities so essential for our suc- 
cessful participation in the war, as the Allied powers are anxious to work 
in harmony with us to secure the most advantageous distribution of the 
world's supply of indispensable materials, desiring only the assurance of 
this Government that the distribution thereof will be equitable, thereby 
insuring the maximum of united effectiveness against the common enemy. 

"The placing under control of the food products and raw materials 
listed in the President's proclamation in regard to imports will enable a 
proper distribution of these commodities, and where necessary insure an 
equitable price, and thus serve to protect the consumer. 



* Instances of such trade organizations and the commodities in connection with 
the importation of which they will exercise the functions above outlined are: 

The Rubber Association of America, Inc. — Rubber, raw or reclaimed waste or 
scrap; balata, gutta, joolatong, gutta percha, gutta siak. 

American Iron and Steel Institute — Tin, chloride of tin, tin ore. 

The Textile Alliance, Inc. — Wool and animal hair, wooled and haired skins, jute 
and burlap, including bags; cotton, flax, mica. 

The United States Shellac Importers' Association, Inc. — Shellac. 

Tanners' Council of the United States of America — Leather, hides and skins, 
tanning materials. 

American Diamond Committee, Inc. — Rough diamonds. 

Plumbago-Graphite Association — Plumbago. 

Oil and Oil Seeds Association of America, Inc. — Palm oil and palm kernel oil. 

It is expected that the trades handling other commodities mentioned in the 
President's proclamation will shortly be formed for the same purpose. 



"The United States Food Administration is laying down certain regu- 
lations governing these commodities, and the War Trade Board will 
cooperate with the Food Administration in granting import licenses freely 
to importers who conform to such regulations. 

"The War Trade Board, conscious of the responsibility it assumes in 
assisting to accelerate and facilitate the Nation's business, is approaching 
this tremendous task in a spirit of the broadest cooperation and accomoda- 
tion, the desire being to obviate obstructions and vexatious delays to the 
fullest possible extent. There is little doubt that all lines of business 
will cheerfully recognize the advantages of this centralized supervision, 
understanding that without it the economic situation and the effective con- 
duct of the war would be seriously prejudiced; and will cooperate with the 
War Trade Board to attain the most equitable and, from a national point 
of view, the most advantageous distribution and utilization of all imported 
commodities." 

As an example of the manner .in which the control of imports 
will be exercised by the War Trade Board, the regulations an- 
nounced by the Board for the importation of wool may be taken 
as an informative example. 

The War Trade Board announced that the following regula- 
tions will apply as of Dec. 15, 1917, to the importation of wool 
from all foreign sources : 

"1. Applicants for import licenses will be required to sign an agree- 
ment containing the following provisions : 

"A — The applicant agrees that he will not sell the wool covered by 

application No. , or any other wool of either foreign or domestic 

origin, to any person other than a manufacturer without the consent of the 
War Trade Board ; and that in the event of a sale to a person other than 
a manufacturer with such consent, he will exact from his purchaser a 
similar agreement. 

"B — The United States Government shall have, and it is hereby 
granted, an option to purchase at the price and on the terms hereinafter 

set forth, all or any part of the wool covered by application No. for 

ten days after Custom House entry thereof, and thereafter on such portion 
thereof as shall be at any time unsold until the whole amount thereof has 
been sold by the importer. In the event of the exercise of such option, 
the basis of price to be paid for the wool shall be equivalent to 5 per cent 
less than the basis of price of July 30, 1917, for similar wool, as estab- 
Hshed by the Valuation Committee of the Boston Wool Trade Association, 
the actual price of each lot to be determined by a committee to be ap- 
pointed jointly by the Boston Wool Trade Association and the United 
States Government. 

"2. These regulations shall not apply to any wool purchased abroad 
on or before Dec. 15, 1917. 

"Applicants for import licenses will therefore file with their first ap- 
plications copies of all their contracts outstanding on Dec. 15, 1917, for the 

~10 



importation of wool from foreign sources, and as to which all wool con- 
tracted for had not been entered at any United States port of entry Dec. 15, 
1917, and showing in detail the amount of wool already shipped and the 
amount yet to be shipped thereunder." 

Trading with the Enemy. The Board, under date of 
October 6, 1917, has published a Hst of some fifteen hundred 
names of firms, in Central and South American countries, with 
whom American merchants are, by the Trading with the Enemy 
Law, prohibited from trading without first obtaining a Hcense 
from the War Trade Board. It is announced that this hst does 
not purport to be a complete list, but that additions will be made 
to it from time to time and names removed therefrom, as the 
facts justify. The Board announces that it will use its facilities 
to obtain the names of substitute firms in these countries with 
whom it may be lawful to transact business. 

An official summary and synopsis of the Trading with the 
Enemy Law prepared by the War Trade Board for the benefit of 
exporters and others interested, says : 

"I. The provisions of the Trading with the Enemy Act did not, for 
the first time, make illegal transactions with the enemy. Such transactions 
were illegal after the declaration of a state of war by the United States, 
and goods concerned in such an illegal trade were liable to seizure by the 
Government. But the Trading with the Enemy Act made such acts crim- 
inal offenses. It also made illegal and criminal any business transactions 
with or for the benefit of an ally of an enemy. 

"In order to meet the exceptional situation where a transaction, though 
technically of an enemy character, might be for the public interest, the 
law provides for a system of issuing licenses in particular cases. This 
enables business men, under certain restrictions and at certain times, if 
for the public good, to trade with an enemy or an ally of an enemy. By 
Executive order of President Wilson, under date of October 12, 1917, the 
authority of the President to license certain acts of trade, unlawful under 
the act, was vested in the War Trade Board. And the Bureau of Enemy 
Trade of that Board receives and reports upon applications for licenses 
under section 3 of the act, and under the direction of the Board issues 
licenses and refusals on such applications. 

"A 'trading with the enemy license' is required when any person in 
the United States desires to 'trade' directly or indirectly with, to, or from, 
or for, or on account of, on or behalf of, or for the benefit of, any other 
person with knowledge or reasonable cause to believe that such other 
person is an 'enemy' or 'ally of enemy,' or is conducting or taking part in 
such trade directly or indirectly for, or on account of, or on behalf of, 
or for the benefit of, an 'enemy' or 'ally of enemy.' 

"II. The act defines 'enemy 'and 'ally of enemy' as any person, no 
matter of what nationality, who resides within the territory of the German 
Empire or its allies or that occupied by their military forces. Even a 

11 



citizen of the United States who has elected to remain within such territory 
is an 'enemy' or 'ally of enemy' within the provisions of the act. Further, 
any person residing outside of the United States of whatever nationality 
and wherever he resides who is doing business within such territory is 
within the statutory definition of 'enemy' or 'ally of enemy.' So also is 
any corporation created by Germany or any of its allies. So also is any 
corporation created by any other nation than the United States which is 
doing business within the territory of Germany or its allies or in territory 
occupied by the military and naval forces thereof. Further, for the 
purposes of the act, the Government of any nation with which the United 
States is at war, the Government of any ally of such nation, or any sub- 
division of any such Government, and any oflicer, agent, or agency of 
such Government is an 'enemy' or 'ally of enemy,' and the act makes no 
restriction as to where the officer, agent, or agency may be located. 

"The President, if he shall find the safety of the United States or the 
successful prosecution of the war shall so require, may, by proclamation, 
include within the term 'enemy' or 'ally of enemy' such other individuals 
or body or class of individuals, other than citizens of the United States, 
as may be natives, citizens or subjects of any nation with which the 
United States is at war, or of any ally of such nation, wherever resident 
or wherever doing business. The President has not issued any such 
proclamation. 

"The words 'to trade,' as used in the act, are defined to mean 

(a) To pay, satisfy, compromise, or give security for the pay- 
ment or satisfaction of any debt or obligation. 

(b) To draw, accept, pay, present for acceptance or payment, or 
indorse any negotiable instrument or chose in action. 

(c) To enter into, carry on, complete, or perform any contract, 
agreement, or obligation. 

(d) Buy or sell, loan or extend credit, trade in, deal with, 
exchange, transmit, transfer, assign or otherwise dispose of, or receive 
any form of property. 

(e) To have any form of business or commercial communication 
or intercourse with. 

"III. If an application for a trading with the enemy license is made, 
one of the following application forms should be used and executed in 
duplicate. 

"1. If it is desired to export an article the exportation of which has 
been restricted and the exportation in the particular case also involves 
trading with or for or on behalf of a person who there is reasonable 
cause to believe is an 'enemy' or 'ally of enemy' or is acting in such trans- 
action on behalf or for the benefit of an 'enemy' or 'ally of enemy,' 
application for license to export and trade with the enemy should be made 
on Application Form A-6. 

"2. If the export of the article has not been restricted, but the 
exportation involves such 'trading with the enemy,' application for license 
to 'trade with the enemy' by exportation should be made on Application 
Form ET-2. 



12 



"3. If it is desired to import merchandise the importation of which 
is not restricted under section II of the Trading with the Enemy Act, and 
the importation involves trading with or for or on behalf of a person who 
there is reasonable cause to believe is an 'enemy' or 'ally of enemy' or is 
acting in the transaction on behalf of or for the benefit of an 'enemy' or 
'ally of enemy,' an application for a license should be made on Application 
Form ET-3. 

"4. If it is desired to engage in any form of financial transaction 
involving trade with or for or on behalf of a person who there is reason- 
able cause to believe is an 'enemy' or 'ally of enemy' or is acting in the 
transaction on behalf of or for the benefit of an 'enemy' or 'ally of enemy,' 
which the War Trade Board may license, such as the making or receipt 
of payment in the course of trade with a person who there is reasonable 
cause to believe is an 'enemy' or 'ally of enemy' or is acting in the tran- 
saction on behalf of an 'enemy' or 'ally of enemy,' application should be 
made on Application Form ET-1. 

"5. An application for a general license to trade with or on behalf 
of a person who there is reasonable cause to believe is an 'enemy' or 'ally 
of enemy,' or acting in the transaction on behalf of or for the benefit of 
an 'enemy' or 'ally of enemy,' should be made on Application Form ET-4. 

"Such a general license, if granted, will cover the series of transac- 
tions described in the application. 

"6. If it desired to obtain leave not merely to export or import goods 
in transactions which involve trading with the 'enemy' or 'ally of enemy,' 
but at the same time to secure permission for a particular method of 
making or receiving payments for the same, it will be necessary for the 
applicant to make use of and to forward, physically attached to each other, 
an application on Form A-6 or ET-2 or ET-3, as the case may be, and an 
application on Form ET-1. 

"IV. Any 'enemy' or 'ally of enemy' who is doing business within 
the United States through branch houses or otherwise may continue to do 
business within the United States for 30 days after October 6, 1917. If 
such 'enemy' or 'ally of enemy' desires to further continue to do business 
in the United States, it must, prior to the expiration of such 30 days, 
make application for license to so continue, and during pendency of that 
application it may continue to do business. During this time all persons 
in the United States may deal with such 'enemy' or 'ally of enemy' in the 
United States without applying for license. If no license is granted it 
becomes unlawful for the 'enemy' or 'ally of enemy' to continue to do 
business and for any person in the United States to have any commercial 
relations with him, or with any person acting on his behalf or for his 
benefit, without a license. 

"V. Citizens or subjects of enemy or ally of enemy nations resident 
in the United States are not 'enemies' or 'allies of enemies' by reason of 
their citizenship, and all persons in the United States may continue their 
commercial relations with such subjects of Germany and its allies without 
applying for or securing licenses, unless there are other facts than citizen- 
ship present which bring them within the definition of 'enemy' or 'ally 

13 



of enemy' set forth above, or unless the President should exercise the 
power granted to him by statute to extend the definition of 'enemy' and 
'ally of enemy' by proclamation to include such persons. This is also true 
of enemy or ally of enemy subjects resident outside the United States who 
are not resident in the territory of the enemy or ally of enemy nations or 
doing business within such territory. The act, however, makes it unlawful 
not only to trade with a person with reasonable cause to believe that he 
is an 'enemy' or 'ally of enemy,' but equally with any person with reason- 
able cause to believe that such person is conducting or taking part in 
such trading, directly or indirectly, for or on behalf of an 'enemy' or 'ally 
of enemy,' and it is immaterial what the citizenship, nationality, or resi- 
dence of such person may be. Applications for licenses must hereafter 
be made out, executed and filed in duplicate." 

Personnel. The personnel of the War Trade Board is a 
representative of the Secretary of State, Chairman; a representa- 
tive of the Secretary of the Treasury, a representative of the 
Secretary of Agricuhure, a representative of the Secretary of 
Commerce, a representative of the Food Administrator, and a 
representative of the United States Shipping Board. 

Bureaus of the War Trade Board. The Bureaus of the 
War Trade Board are : Exports, Imports, Enemy Trade, War 
Trade IntelHgence, Transportation, Administration, Research, 
Tabulation and Statistics, Foreign Agents and Reports. 

Branch Offices of the War Trade Board: Galveston, 
Tex., Bureau of Exports, Federal Building. 

Los Angeles, Cal., Bureau of Exports, International Bank 
Building. 

Mobile, Ala., Bureau of Exports, Custom House. 

New Orleans, La., Bureau of Exports, Canal Bank Buildmg. 

New York, N. Y., Bureau of Exports, 45 Broadway. 

Philadelphia, Pa., Bureau of Exports, 305 Lafayette Building. 

Portland, Ore., Bureau of Exports, 748 Morgan Building. 

San Francisco, Cal., Bureau of Exports, 216 Custom House. 

Savannah, Ga., Bureau of Exports, Savannah Bank and Trust 
Co. Building. 

Seattle, Wash., Bureau of Exports, 825-26 Henry Building. 

Parties interested may obtain the publications of the War 
Trade Board by making application to the Division of Informa- 
tion, War Trade Board, Bond Building, Washington. 

War Trade Council. By executive order of October 14, 
1917, there was created a War Trade Council under the authority 
of the Trading with the Enemy Law, which Council consists of 

14 



the Secretary of State, Secretary of Agriculture, Secretary of 
Commerce, Secretary of Treasury, Chairman of the United 
States Shipping Board, and the Food Administrator. 

This Council is an advisory body to the President and to the 
War Trade Board. 

Alien Property Custodian 

Simultaneously with the creation of the War Trade Board, the 
President, by executive order of October 12, 1917, vested the 
administration of the provisions of the Trading with the Enemy 
Law with respect to the custody, care and control of enemy prop- 
erty in this country within the terms of the act of October 6, 
1917, in an Alien Property Custodian. 

Who Are Enemy Aliens. These are the persons more par- 
ticularly described in the statute itself and in the chapter relating 
to the activities of the War Trade Board (pages 11, 12). 

Under the terms of the law and the executive orders of the 
President, large powers are vested in the Alien Property Cus- 
todian to take possession of, hold and acquire enemy property. 
All persons who hold property which under the terms of the act 
is "enemy property" or who have any interest therein, are re- 
quired to report the facts in relation thereto upon blanks which 
will be supplied upon request of the Alien Property Custodian. 
The penalties for failure to report are very severe and the report 
must be made if the holder of the property has any reason to 
believe that an enemy or ally of enemy either owns, or has an 
interest in such property, which includes moneys, credits, goods, 
wares, merchandise, choses in action or any kind of real and 
personal property. 

The Alien Property Custodian, in the discharge of his duties, 
is in close contact with the State and Treasury Departments, the 
Department of Justice, Federal Trade Commission and the War 
Trade Board. 

No Confiscation. It is not the policy of the Trading with 
the Enemy Law to confiscate the property of either enemies or 
allies of enemies ; the measure is designed to bring into the cus- 
tody of the Government all such property, and to use and preserve, 
upon a basis of practical justice, all such enemy property as may 
be found within the jurisdiction of the United States, and at the 



15 



same time to give full and accurate expression by specific statu- 
tory enactment of the rules of international law in respect to 
such property. 

Licenses. A system of licenses is provided, v^^hereby the 
enormous volumie of this character of business may be carried on 
to the best economic effect and to as little disturbance of legiti- 
mate business and trade as possible. These licenses, with respect 
to enemy business, are granted by the War Trade Board upon 
the recommendation of the Alien Property Custodian. 

Address. The offices of the Alien Property Custodian are 
16th and P Streets, N. W., Washington, D. C. 



L^ommission 

As a part of the fundamental duty imposed upon the Commis- 
sion accentuated by the disturbance of world trade conditions by 
reason of the war, the Commission is making investigation of 
commercial treaties, foreign tariff' arrangements and economic 
alliances and is bringing together, as far as possible, all the per- 
tinent evidence bearing on the entire subject. 

The Commission is preparing a special report on "Bargaining 
Tariffs, Commercial Treaties and Economic Alliances." It is 
intended that this report shall cover interpretations of the most- 
favored-nation clause in commercial treaties ; include an historical 
and critical consideration of all of the commercial treaties of the 
United States ; a review of bargaining tariffs ; the commercial 
treaty systems of the countries of Continental Europe ; a study 
of commercial relations of Canada, particularly with reference 
to the United States ; the preferential tariffs of Australia, New 
Zealand, South African Union, and India, and the proposed 
programs of imperial preference within the British Empire ; a 
careful study of the commercial treaties and bargaining tariffs 
of the South American countries, in which special reference will 
be made to the preferential relations between the United States 
and Brazil; a review of the situation of the Caribbean countries; 
and a study of the commercial treaties and tariff problems of the 
Far East. 

The reports of the Commission, as issued, will be sent to parties 
interested who may address their inquiries to Tariff" Commission, 
Washington, D. C. 



16 



Federal Trade Commission 

The Federal Trade Commission, by authority of new legislation 
and sundry Executive Orders, is charged with certain war powers, 
among which are : 

Licensed Use of Patents. Under the provisions of the 
Trading with the Enemy Law "any citizen of the United States 
or any corporation organized within the United States, desiring 
to manufacture, or cause to be manufactured, a machine, manu- 
facture, composition of matter, or design, or to carry on, or to 
use any trade-mark, print, label, or cause to be carried on a 
process under any patent or copyrighted matter, owned or con- 
trolled by an enemy or ally of enemy at any time during the 
existence of a state of war, may apply to the President for a 
license ; * * * " 

By an executive order of October 12, 1917, the President 
vested in the Federal Trade Commission the power to grant or 
to refuse such licenses and upon such terms and conditions not 
contrary to law as might be fixed by the Commission. 

The fees charged for such licenses may not exceed one hundred 
dollars and not exceeding one per cent of the fund deposited by 
the licensee with the Alien Property Custodian as provided by 
law. 

The Commission may order inventions which, in its opinion, 
may be detrimental to the public safety to be kept secret and the 
granting of letters patent withheld until the end of the war. 

Applicants for licenses under patents or copyrights owned or 
controlled by an enemy or an ally of an enemy must apply to the 
Trade Commission upon blanks which will be supplied by the 
Trade Commission and in conformity with its rules in that respect 
published. 

Exclusive licenses will not be issued unless the public interest 
shall otherwise require. 

The Commission, by rules established in this respect, requires 
that all applications for patents which a party desires to file in 
the country of an enemy or ally of an enemy, and every paper 
and transaction relating thereto must be submitted to the Com- 
mission in the English language, together with proper remittances 
therefor. 

Cost Investigations. The Federal Trade Commission also 
conducts, at the request of the President, various cost investiga- 

17 



tions which are used by the several departments in negotiations 
with industries respecting the purchase by the Government of 
needed products, and where authorized by law, these cost inves- 
tigations are used in the fixing of prices, as for example, coal. 

Address. The address of the Federal Trade Commission is 
15th and K Streets, N. W., Washington, D. C. 

Secretary of the Treasury 

The Secretary of the Treasury, by authority of new legislation 
and sundry executive orders, is charged with certain war powers, 
among which are : 

Director General of Railroads. In taking over the control 
of the railroads and vesting such control in the person of the 
present Secretary of the Treasury, the President issued the fol- 
lowing proclamation : 

"BY THE PRESIDENT OF THE UNITED STATES OF AMERICA 
—A PROCLAMATION 

"WHEREAS the Congress of the United States, in the exercise of the 
constitutional authority vested in them, by joint resolution of the Senate 
and House of Representatives, bearing date April 6, 1917, resolved : 

'That the state of war between the United States and the Imperial 
German Government which has thus been thrust upon the United 
States is hereby formally declared ; and that the President be, and he 
is hereby, authorized and directed to employ the entire naval and miU- 
tary forces of the United States and the resources of the government 
to carry on war against the Imperial German Government ; and to 
bring the conflict to a successful termination, all of the resources of 
the country are hereby pledged by the Congress of the United States.' 
"And by joint resolution bearing date of December 7, 1917, resolved: 
'That a state of war is hereby declared to exist between the United 
States of America and the Imperial and Royal Austro-Hungarian 
Government ; and that the President be, and he is hereby, authorized 
and directed to employ the entire naval and military forces of the 
United States and the resources of the government to carry on war 
against the Imperial and Royal Austro-Hungarian Government ; and 
to bring the conflict to a successful termination, all the resources of 
the country are hereby pledged by the Congress of the United States.' 
"And Whereas it is provided by section 1 of the act approved 
August 29, 1916, entitled 'An act making appropriations for the support of 
the army for the fiscal year ending June 30, 1917, and for other purposes,' 
as follows : 



18 



'The President, in time of war, is empowered, through the Secre- 
tary of War, to take possession and assume control of any system or 
systems of transportation, or any part thereof, and to utilize the same, 
to the exclusion as far as may be necessary of all other traffic thereon, 
for the transfer or transportation of troops, war material and equip- 
ment, or for such other purposes connected with the emergency as may 
be needful or desirable.' 

■'AND WHEREAS it has now become necessary in the national de- 
fense to take possession and assume control of certain systems of trans- 
portation and to utilize the same, to the exclusion as far as may be neces- 
sary of other than war traffic thereon, for the transportation of troops, 
war material and equipment therefor, and for other needful and desirable 
purposes connected with the prosecution of the war ; 

"NOW, THEREFORE, I, WOODROW WILSON, President of the 
United States, under and by virtue of the powers vested in me by the fore- 
going resolutions and statute, and by virtue of all other powers thereto 
me enabling, do hereby, through Newton D. Baker, Secretary of War, take 
possession and assume control at 12 o'clock noon on the twenty-eighth day 
of December, 1917, of each and every system of transportation and the 
appurtenances thereof located wholly or in part within the boundaries of the 
continental United States and consisting of railroads and owned or controlled 
systems of coastwise and inland transportation, engaged in general trans- 
portation, whether operated by steam or by electric power, including also 
terminals, terminal companies and terminal associations, sleeping and par- 
lor cars, private cars and private car lines, elevators, warehouses, telegraph 
and telephone lines and all other equipment and appurtenances commonly 
used upon or operated as a part of such rail or combined rail and water 
systems of transportation; to the end that such systems of transportation 
be utilized for the transfer and transportation of troops, war material and 
equipment ; to the exclusion so far as may be necessary of all other traffic 
thereon ; and that so far as such exclusive use be not necessary or desirable, 
such systems of transportation be operated and utilized in the performance 
of such other services as the national interest may require and of the usual 
and ordinary business and duties of common carriers. 

"It is hereby directed that the possession, control, operation and utiliza- 
tion of such transportation systems hereby by me undertaken shall be 
exercised by and through Wm. G. McAdoo, who is hereby appointed and 
designated Director General of Railroads. Said director may perform the 
duties imposed upon him, so long and to such extent as he shall determine, 
through the boards of directors, receivers, officers and employes of said 
systems of transportation. Until and except so far as said director shall 
from time to time by general or special orders otherwise provide, the 
boards of directors, receivers, officers and employes of the various trans- 
portation systems shall continue the operation thereof in the usual and 
ordinary course of the business of common carriers in the names of their 
respective companies. 

"Until and except so far as said director shall from time to time other- 
wise by general or special orders determine, such systems of transportation 

19 



shall remain subject to all existing statutes and orders of the Interstate 
Commerce Commission, and to all statutes and orders of regulating com- 
missions of the various States in which said systems or any part thereof 
may be situated. But any orders, general or special, hereafter made by 
said director, shall have paramount authority and be obeyed as such. 

"Nothing herein shall be construed as now affecting the possession, 
operation and control of street electric passenger railways, including rail- 
ways commonly called interurbans, whether such railways be or not be 
owned or controlled by such railroad companies or systems. By sub- 
sequent order and proclamation, if and when it shall be found necessary 
or desirable, possession, control, or operation may be taken of all or any 
part of such street railway systems, including subways and tunnels; and 
by subsequent order and proclamation possession, control and operation in 
whole or in part may also be relinquished to the owners thereof in any 
part of the railroad systems or rail and water systems, possession and 
control of which are hereby assumed. 

"The director shall as soon as may be after having assumed such pos- 
session and control enter upon negotiations with the several companies 
looking to agreements for just and reasonable compensation for the pos- 
session, use and control of their respective properties on the basis of an 
annual guaranteed compensation, above accruing depreciation and the 
maintenance of their properties, equivalent, as nearly as may be, to the 
average of the net operating income thereof for the three-year period 
ended June 30, 1917 — the results of such negotiations to be reported to me 
for such action as may be appropriate and lawful. 

"But nothing herein contained, expressed or implied, or hereafter done 
or suffered hereunder, shall be deemed in any way to impair the rights 
of the stockholders, bondholders, creditors and other persons having in- 
terests in said systems of transportation or in the profits thereof, to receive 
just and adequate compensation for the use and control and operation of 
their property hereby assumed. 

"Regular dividends hitherto declared, and maturing interest upon 
bonds, debentures and other obligations, may be paid in due course ; and 
such regular dividends and interest may continue to be paid until and un- 
less the said director shall from time to time otherwise by general or 
special orders determine; and, subject to the approval of the director, the 
various carriers may agree upon and arrange for the renewal and exten- 
sion of maturing obligations. 

"Except with the prior written assent of said director, no attachment by 
mesne process or on execution shall be levied on or against any of the 
propert}^ used by any of said transportation systems in the conduct of their 
business as common carriers ; but suits may be brought by and against said 
carriers and judgments rendered as hitherto until and except so far as said 
director may, by general or special orders, otherwise determine. 

"From and after 12 o'clock on said twenty-eighth day of December, 
1917, all transportation systems inckided in this order and proclamation 
shall conclusively be deemed within the possession and control of said 



20 



director without further act or notice. But for the purpose of accounting 
said possession and control shall date from 12 o'clock midnight on De- 
cember 31, 1917. 

"IN WITNESS WHEREOF, I have hereunto set m.y hand and 
caused the seal of the United States to be affixed. 

"Done by the President, through Newton D. Baker, Secretary of War, 
in the District of Columbia, this twenty-sixth day of December, in the 
year of our Lord one thousand nine hundred and seventeen, and of the 
independence of the United States the one hundred and forty-second. 

WOODROW WILSON. 
By the President : 

Robert Lansing, Newton D. Baker, 

Secretary of State Secretary of War." 

In explaining his action the President made the following 
statement : 

"I have exercised the powers over the transportation systems of the 
country which were granted me by the act of Congress of last August 
because it has become imperatively necessary for me to do so. This is a 
war of resources no less than of men, perhaps even more than of men, and 
it is necessary for the complete mobilization of our resources that the 
transportation systems of the country should be organized and employed 
under a single authority and a simplified method of coordination which 
have not proved possible under private management and control. 

"The committee of railway executives who have been cooperating with 
the government in this all-important matter have done the utmost that it 
was possible for them to do ; have done it with patriotic zeal and with 
great ability; but there were difficulties that they could neither escape nor 
neutralize. 

"Complete unity of administration in the present circumstances in- 
volves upon occasion and at many points a serious dislocation of earnings, 
and the committee was, of course, without power or authority to rearrange 
charges or effect proper compensations and adjustments of earnings. 

"Several roads which were willingly and with admirable public spirit 
accepting the orders of the committee have already suffered from these cir- 
cumstances and should not be required to suffer further. In mere fairness 
to them the full authority of the Government must be substituted. The 
Government itself will thereby gain an immense increase of efficiency in the 
conduct of the war and of the innumerable activities upon which its suc- 
cessful conduct depends. 

"The public interest must be first served and, in addition, the financial 
interests of the Government and the financial interest of the railways must 
be brought under a common direction. The financial operations of the rail- 
ways need not then interfere with the borrowings of the Government, and 
they themselves can be conducted at a greater advantage. Investors in 

21 



railway securities may rest assured that their rights and interests will be as 
scrupulously looked after by the Government as they could be by the direc- 
tors of the several railway systems. 

"Immediately upon the reassembling of Congress I shall recommend 
that these definite guarantees be given; first, of course, that the railway 
properties will be maintained during the period of Federal control in as 
good repair and as complete equipment as when taken over by the Govern- 
ment ; and, second, that the roads shall receive a net operating income 
equal in each case to the average net income of the three years preceding 
June 30, 1917; and I am entirely confident that the Congress will be dis- 
posed in this case, as in others, to see that justice is done and full security 
assured to the owners and creditors of the great systems which the Gov- 
ernment must now use under its own direction or else suffer serious em- 
barrassment. 

"The Secretary of War and I are agreed that, all the circumstances 
being taken into consideration, the best results can be obtained under the 
immediate executive direction of the Hon. William G. McAdoo, whose 
practical experience peculiarly fits him for the service and whose authority 
as Secretary of the Treasury will enable him to coordinate as no other 
man could the many financial interests which will be involved and which 
might, unless systematically directed, suffer very embarrassing entangle- 
ments. 

"The Government of the United States is the only great Government 
now engaged in the war which has not already assumed control of this 
sort. It was thought to be in the spirit of American institutions to attempt 
to do everything that was necessary through private management, and if 
zeal and ability and patriotic motive could have accomplished the necessary 
unification of administration, it would certainly have been accomplished; 
but no zeal or ability could overcome insuperable obstacles, and I have 
deemed it my duty to recognize that fact in all candor now that it is 
demonstrated and to use without reserve the great authority reposed in 
me. A great national necessity dictated the action and I was therefore not 
at liberty to abstain from it." 

Order No. 1. Under date of December 29, 1917, the Director 
General of Railroads issued Order No. 1 as follows : 
"To All Concerned : 

"Pursuant to the order of the President of the United States, through 
the Secretary of War, the undersigned, as Director General of Railroads, 
has taken possession and assumed control of certain transportation sys- 
tems described in the proclamation of the President, of which proclamation 
and order officers, agents, and employes of said transportation system are 
"to take immediate and careful notice. In addition to the provisions there- 
in contained, it is, until further order, directed that 

"1. All officers, agents, and employes of such transportation system 
may continue in the performance of their present regular duties, reporting 
to the same officers as theretofore and on the same terms of employment. 

. 22 



"2. Any officer, agent, or employe desiring to retire from his employ- 
ment shall give the usual and seasonable notice to the proper officer to the 
end that there may be no interruption or impairment of the transportation 
service required for the successful conduct of the war and the needs of 
general commerce. 

"3. All transportation systems covered by said proclamation and order 
shall be operated as a national system of transportation, the common and 
national needs being in all instances held paramount to any actual or sup- 
posed corporate advantage. All terminals, ports, locomotives, rolling stock, 
and other transportation facilities are to be fully utilized to carry out this 
purpose without regard to ownership. 

"4. The designation of routes by shippers is to be disregarded when 
speed and efficiency of transportation service may thus be promoted. 

"5. Traffic agreements between carriers must not be permitted to in- 
terfere with expeditious movements. 

"6. Through routes which have not heretofore been established be- 
cause of short hauling or other causes are to be established and used 
whenever expedition and efficiency of traffic will thereby be promoted ; 
and if difficulty is experienced in such through routing, notice thereof shall 
by carriers or shippers or both be given at once to the Director by wire. 

"7. Existing schedules or rates and outstanding orders of the Inter- 
state Commerce Commission are to be observed, but any such schedules or 
rates or orders as may hereafter be found to conflict with the purposes of 
said proclamation or with this order shall be brought immediately by wire 
to the attention of the Director." 

Insurance. Under the provisions of the War Risk Insurance 
Law, September 2, 1914, as amended by the laws of August 11, 
1916, June 12, 1917, and of October 6, 1917, the Division of 
Marine and Seamen's Insurance of the Bureau of War Risk 
Insurance executes policies of insurance upon ships and their 
cargoes and upon the lives of men employed in such commerce. 

The Division of Military and Naval Insurance of this Bureau 
administers the law of October 6, 1917, respecting the insurance 
and compensation features of this law as affecting the military 
and naval forces of the United States and their families and 
dependents. 

Foreign Insurance Companies. All foreign insurance 
companies doing business in the United States are required to 
obtain licenses from the Secretary of the Treasury on or before 
February 1^ 1918, in accordance with an order of the President. 

These orders are made under the provisions of the Espionage 
Law of June 15, 1917, and Trading with the Enemy Law of 
October 6, 1917. 



23 



The Secretary of the Treasury has published the forms of 
Ucenses to be issued to foreign companies, designed to prevent 
information of miUtary value reaching the enemy. 

Gold and Silver Exports. The exportation of gold or sil- 
ver coin, bullion or currency, transfer of credit in any form, 
including the prohibition of transactions in foreign exchange, is 
committed to the Secretary of the Treasury and by him admin- 
istered through the Federal Reserve Board. 

Censorship. The direct carriage of any letter or other writ- 
ing, except in the regular course of the mail, or the sending, taking 
or transmission out of the United States of any letter, or other 
writing, book, map, plan or other paper, picture, or any telegram, 
cablegram, or wireless message or other form of communication 
intended for, or to be delivered directly or indirectly to an enemy 
or ally of enemy is prohibited by the Trading with the Enemy 
Law, but the Secretary of the Treasury is authorized by the 
President to grant licenses for the carriage of such matter. 

Censorship Board 

A special Censorship Board, composed of representatives of 
the Secretary of War, Secretary of the Navy, the Postmaster 
General, the War Trade Board and the Chairman of the Com- 
mittee on Public Information, is created by executive order and 
charged with the duty of censorship of communications made by 
mail, cable, radio or other means of transmission passing between 
the United States and any foreign country. 

Department of Justice 

On the declaration of war with Germany the President, by 
proclamation of April 6, 1917, directed the attention of German 
residents in this country to the provisions of Sections 4067, 4068, 
4069 and 4070 of the Revised Statutes, which define the relation 
of "all natives, citizens, denizens, or subjects of the hostile na- 
tion or government, being males of the age of fourteen years and 
upwards, who shall be within the United States, and not actually 
naturalized." 

In a supplemental proclamation issued November 16, 1917, 
the President added certain other regulations to the first procla- 
mation, among which regulations were : 

24 



"19. All alien enemies are hereby required to register at such times 
and places and in such manner as may be fixed by the Attorney General 
of the United States and the Attorney General is hereby authorized and 
directed to provide, as speedily as may be practicable, for registration of 
all alien enemies and for the issuance of registration cards to alien enemies 
and to make and declare such rules and regulations as he may deem neces- 
sary for effecting such registration ; and all alien enemies and all other 
persons are hereby required to comply with such rules and regulations ; 
and the Attorney General in carrying out such registration, is hereby 
authorized to utilize such agents, agencies, officers and departments of the 
United States and of the several states, territories, dependencies and 
municipalities thereof and of the District of Columbia as he may select 
for the purpose, and all such agents, agencies, officers and departments 
are hereby granted full authority for all acts done by them in the execution 
of this regulation vi^hen acting by the direction of the Attorney General. 
After the date fixed by the Attorney General for such registration, an 
alien enemy shall not be found within the limits of the United States, its 
territories or possessions, without having his registration card on his 
person. 

"20. An alien enemy shall not change his place of abode or occupation 
or otherwise travel or move from place to place without full compliance 
with any such regulations as the Attorney General of the United States 
may, from time to time, make and declare ; and the Attorney General is 
hereby authorized to make and declare, from time to time, such regula- 
tions concerning the movements of alien enemies as he may deem necessary 
in the premises and for the public safety, and to provide in such regula- 
tions for monthly, weekly or other periodical report by alien enemies to 
federal, state or local authorities ; and all alien enemies shall report at the 
times and places and to the authorities specified in such regulations." 

Registration of Enemy Aliens. Under the order of the 
quoted paragraphs of the proclamation of the President, the At- 
torney General on December 29, 1917, promulgated detailed regu- 
lations respecting the persons required to register, the times, 
places and method of registration and limitations upon the change 
of residence by an alien enemy. 

This registration is to be the week of February 4, 1918, and 
includes all natives, citizens, denizens, or subjects of the German 
Empire, or of the Imperial German Government, being males of 
the age of fourteen years and upward, who are within the United 
States and not actually naturalized as American citizens. Those 
failing to register, or who, after fifteen days from the completion 
of the week of registration are found without their registration 
card will be subject to restraint, imprisonment and detention for 
the duration of the war, or to give security, or to remove and 
depart from the United States in the manner prescribed by the 

25 



sections of the Revised Statutes, above cited, and shall likewise 
be subject to all other penalties prescribed in the several procla- 
mations of the President of the United States and in the regula- 
tions duly promulgated by or under authority of the President. 

The registration is to be conducted by the United States Mar- 
shal of the several judicial districts and in cities will take place 
at the police stations, and in nonurban areas the registration will 
be made in the postoffices. 

Each registrant must supply four unmounted photographs of a 
size not larger than 3x3, one of which photographs will be at- 
tached to his registration card, and for further identification, 
finger prints will be used, both in registration and on registration 
cards. These registration cards will not be issued before ten days 
after the registration has taken place and the registration officers 
are enjoined to verify the statement of the registrant as to the 
place of his employment. 

While subjects of Austria-Hungary are not required to register 
in view of the fact that this may later be required, as well as the 
fact that the registration officers are required to verify the state- 
ment of the registrant as to his place of employment, and that he 
may not change such employment without permission it is sug- 
gested that all employers take, keep and maintain information of 
the birth-place and citizenship status of their employes. This is 
increasingly important, owing to the further requirement of the 
mentioned registration that enemy alien registrants may not 
change their residence, even within the same registration district 
until they have presented to the registration officer their registra- 
tion card, and having such change of residence noted thereon. It 
is further provided in these regulations that no enemy alien may 
remove to another registration district without a permit and on 
arriving in another registration district, he must present such 
permit to the registration officer of that district. 

Aircraft Board 

On behalf of the Departments of War and Navy and as author- 
ized by the respective Secretaries of these Departments, under 
the provisions of the law of October 1, 1917, the President has 
created an Aircraft Board to direct and supervise, in accordance 
with the requirements of the respective departments, the purchase, 
production and manufacture of aircraft, engines, ordnance and 
instruments used in connection therewith, materials and acces- 

26 



series therefor, with authority to purchase, lease or construct 
plants for the manufacture of aircraft, engines and accessories, 
and to make recommendations as to contracts for the production 
of such equipment. 

National Advisory Committee for Aeronautics 

Under the provisions of the Naval Appropriation Laws of 
August 29, 1916, and March 4, 1917, and the Organic Law of 
March 3, 1915, the National Advisory Committee for Aeronautics 
cooperates with various Government departments, private institu- 
tions of research and universities, concerning the development 
and application of aeronautics, issues technical reports and directs 
and supervises the scientific study of the problems of flight. 

Shipping Board 

The United States Shipping Board was established by the law 
of September 7, 1916. Its power was broadened by the law of 
June 15, 1917, which law authorized the President to give priority 
control of shipping materials and supplies ; and appropriated nec- 
essary funds for the purchase or requisition of plants, charters 
or ships already constructed or in course of construction. 

Under additional legislative authority the Shipping Board has 
created an Emergency Fleet Corporation for the construction, 
purchase, equipment, lease, charter, maintenance and operation 
of vessels in the commerce of the United States. 

Department of Labor 
Employment Service. Under largely increased appropria- 
tions the Department of Labor is developing a War Emergency 
Employment Service with a view of ascertaining labor needs in 
war industries and developing the resources of this service in 
endeavoring to supply such needs. District offices have been and 
others are in process of establishment in many cities and indus- 
trial centers. 

Fuel Administration 

The Fuel Administration was created by executive order on 
August 23, 1917, under the Food and Fuel Control Law of 
August 10, 1917. All the powers given the President with respect 
to fuel products, such as coal, coke and fuel oils, were by him 
vested in the Fuel Administrator. 



27 



The law gave the President authority to fix fuel prices, to 
license dealers and to punish by revocation of licenses for viola- 
tion of the terms of the law, or regulations made pursuant thereto. 

The Fuel Administrator has fixed prices for fuel products and 
readjusted them from time to time, and has created various sub- 
sidiary administrative departments in the several states. 

Contracts for the Sale of Coal and Coke. Under date of 
December 24, 1917, the Fuel Administrator issued the following 
order : 

"The United States Fuel Administrator hereby orders and directs that 
until further or other order of the United States Fuel Administrator and 
subject to modification hereafter from time to time and at any time, the 
following regulations are established relative to contracts for the sale of 
coal and coke. 

'A coal or coke operator or producer may, in accordance with these 
regulations and not otherwise, make contracts for the sale of coal 
mined or produced, or of coke produced or made, by him with any 
consumer or other person including jobbers. 

'(1) No such contract shall provide for the delivery or supply 
of coal or coke over a period longer than one year; and such period 
of one year shall terminate at a date not more than eighteen months 
from the date of actual execution of the contract. 

'(2) Every such contract for the sale of coal shall provide that 
the price of any coal delivered thereunder shall, with respect to each 
shipment of coal under such contract, not exceed the price at the mine 
as fixed by the President, or by the United States Fuel Administrator 
under authority of the President, and in effect at the date of such 
shipment from the mine. 

'(3) Every such contract for the sale of coke shall provide that 
the price of any coke delivered thereunder shall, with respect to each 
shipment of coke under such contract, not exceed the price for coke 
as fixed by the President, or by the United States Fuel Administrator 
under authority of the President, for the kind of coke specified in the 
contract, and in effect at the date when such shipment of coke leaves 
the point at which it is produced or stored. 

'(4) Every such contract shall provide that the same shall be 
forthwith cancelled and of no further binding effect upon either party 
thereto, upon receipt of a request or an order from the United States 
Fuel Administrator for such cancellation, and that in case of such 
cancellation neither party to the contract shall be under any further 
liability to the other thereunder and that neither shall have any claim 
against the United States by reason of such contract or the cancel- 
lation thereof. 



28 



'(5) Every such contract shall provide that coal or coke deliver- 
able thereunder shall be subject to requisition by the United States 
Fuel Administrator, including under the term requisition the right to 
divert such coal or coke to any other party than the purchaser named 
in the contract; that such requisition may be made at any time during 
the continuance of the contract and prior to actual receipt and unload- 
ing of the coal or coke so requisitioned, at the point of ultimate desti- 
nation, by the person entitled thereto under the terms of the contract; 
that such requisition shall be made at the going Government price at 
the date of shipment from the mine of the coal so requisitioned or of 
the shipment of the coke so requisitioned from the place of production 
or storage thereof, and without other or further liability of the Gov- 
ernment to either party to the contract than the payment of such price 
and freight, so far as either party to the contract may at the time of 
such requisition or diversion be liable for such freight payment. 

'(6) A jobber may make contracts for the sale of coal or coke 
owned by him, or to which he is entitled under contracts made by him 
with operators or producers in conformity with these regulations at 
a price not exceeding the purchase 'price paid or payable by such jobber 
for such coal or coke under the limitations of the foregoing para- 
graphs numbered (2) and (3), plus such commission on coal (not on 
coke)* as may, at the time of the shipment thereof from the mine 
where such coal is produced or from the place where such coke is 
made, be the then permissible jobber's commission. All such contracts 
byjobbers for the sale of coal or coke shall conform to the provisions 
and requirements in the foregoing paragraphs numbered (1), (4), 
and (5). 

'(7) Every coal or coke operator or producer and every jobber 
shall send within ten days of the execution of any contract by him a 
certified copy thereof to the United States Fuel Administrator at 
Washington, D. C., marked "Attention of Legal Department".' 

"No contract may be made, or if made hereafter will be recognized as 
valid, by the United States Fuel Administrator, which involves railroad 
cross-hauling of coal, except in the case of gas-coal or coal to be used for 
by-product purposes. 

"Oral contracts for the delivery or supply of coal or coke will in no 
cases be recognized by the Fuel Administrator as valid or binding upon 
either party thereto and are hereby prohibited. 

"All and any contracts for the sale of coal or coke are subject to can- 
cellation and termination at any time by the President or by the United 
States Fuel Administrator acting under authority of the President. 

"This order shall be effective December 29, 1917, 7 a. m." 



* See Order of November 9, 1917, effective November 10, 1917, for Coke Com- 
missions. 



29 



Food Administration 

The Food Administration was created by executive order on 
August 10, 1917, under the provisions of the Food and Fuel 
Control Law of the same date. 

It licenses dealers in food commodities, requires reports of 
stocks on hand from time to time, and through subsidiary organ- 
izations acts as a purchasing agent of food products, both for 
export and import ; and revokes licenses of dealers where inves- 
tigation shows that such dealers have violated the terms of their 
licenses or have engaged in proscribed practices, such as hoarding, 
waste and other practices inhibited by law. 

Council of National Defense 

The Council of National Defense is composed of the Secretary 
of War, Secretary of the Navy, Secretary of the Interior, Sec- 
retary of Agriculture, Secretary of Commerce and Secretary of 
Labor. 

Advisory Commission. The law creating the Council of 
National Defense provided that it should nominate to the Presi- 
dent and the President should appoint an Advisory Commission 
consisting of not more than seven persons, "each of whom shall 
have special knowledge of some industry, public utility, or the 
development of some natural resource, or be otherwise specially 
qualified, in the opinion of the Council, for the performance of 
the duties hereinafter provided." 

In conformity with this provision, the President named 
Daniel Willard, President of the Baltimore and Ohio Railroad, 
Chairman ; Howard E. Coffin, Vice-President, Hudson Motor 
Company ; Julius Rosenwald, President, Sears, Roebuck & Com- 
pany; Bernard M. Baruch, banker; Dr. Hollis Godfrey, Presi- 
dent, Drexel Institute; Samuel Gompers, President, American 
Federation of Labor ; and Dr. Franklin Martin, Secretary, Gen- 
eral American College of Surgeons, Chicago, as members of this 
Advisory Commission. 

Activities. The object and purposes of the Council of 
National Defense and of the Advisory Commission are best 
stated in the terms of the law. Public No. 242, 64th Congress, 
approved August 29, 1916 : 



30 



"That a Council of National Defense is hereby established for the 
coordination of industries and resources for the national security and 
welfare, * * * 

"That it shall be the duty of the Council of National Defense to 
supervise and direct investigations and make recommendations to the 
President and the heads of executive departments as to the location of 
railroads vi^ith reference to the frontier of the United States so as to 
render possible expeditious concentration of troops and supplies to points 
of defense; the coordination of military, industrial, and commercial pur- 
poses in the location of extensive highways and branch lines of railroad ; 
the utilization of w'aterways ; the mobilization of military and naval 
resources for defense ; the increase of domestic production of articles and 
materials essential to the support of armies and of the people during the 
interruption of foreign commerce; the development of seagoing trans- 
portation; data as to amounts, location, method and means of production, 
and availability of military supplies ; the giving of information to pro- 
ducers and manufacturers as to the class of supplies needed by the mili- 
tary and other services of the Government, the requirements relating 
thereto, and the creation of relations which will render possible in time 
of need the immediate concentration and utilization of the resources of the 
Nation." 

Committees of the Council. Immediately upon the outbreak 
of war, under authority of the mentioned law the Advisory 
Commission to the Council, which serves without pay, created 
under the authority of the same law "committees of specially 
qualified persons to serve without compensation" covering many 
lines of industry, but which committees were, owing to the pro- 
visions of section 3 of the Food and Fuel Control Law of 
August 10, 1917, forced to retire with the thanks of the Council 
for their patriotic services. 

Present Organization. The present organization of the 
Council of National Defense and of the Advisory Commission is 
a War Industries Board, a Priority Committee, a Purchasing 
Commission, an Emergency Construction and Contract Section, 
a Storage Facilities Section, a Legal Section, a Machine Gun 
Section, a General Medical Board, a Committee on Education, a 
Committee on Labor, a Highway Transport Committee, an Inland 
Water Transportation Committee, a Committee on Housing, a 
Committee on Defense Work, the Commercial Economy Board, 
and a Committee on Coal Production. 

War Industries Board, This Board, of which Mr. Daniel 
Willard of the Advisory Commission is Chairman, is designed 
to act as a clearing house for the war industry needs of the 

31 



Government and to determine the most effective ways of meeting 
such needs ; to consider methods of increasing production to the 
extent of creating or extending the activities of industries required 
by war emergencies ; to give consideration to the sequence and 
relative urgency of the needs of the different Government 
services ; to consider price factors and the industrial and labor 
aspects of problems involving war questions affecting projects 
and activities. 

Commandeering of Private Plants. Upon the recommen- 
dation of the War Industries Board, the President, through the 
Secretary of War, has commandeered for the use of the United 
States the electrical power supplied by certain plants at Niagara 
Falls, New York, and by agreement and order, has directed the 
disposition of this power to particular uses. 

The transaction was consummated by the following order and 
contracts : 

"December 28, 1917. 

"To Company, 

"Niagara Falls, N. Y. 

"Sirs : 

"The President of the United States, by virtue of and pursuant to the 
authority vested in him, and by reason of the exigencies of the national 
security and defense, hereby places an order with you for, and hereby 
requisitions the total quantity and output of the electrical power which is 
capable of being produced and/or delivered by you through the use of all 
waters diverted or capable of being diverted through your intake canal 
and/or your plants and machinery connected therewith. 

"You are directed to make immediate and continuous delivery of such 
power until further notice. This order will be given precedence over any 
and all orders and contracts heretofore placed with you. 

"You will be paid fair and just compensation for power delivered 
hereunder. 

"Kindly acknowledge receipt hereof to the undersigned. 

"(Signed) Newton D. Baker, 

" Secretary of War." 

"TEMPORARY WAIVER OF DELIVERY OF ELECTRICAL 
POWER OF COMPANY. 

"WHEREAS, the President of the United States, by virtue of and 
pursuant to the authority vested in him, and by reason of the exigencies 

of the national security and defense has placed an order with 

Company on the twenty-eighth day of December, 1917, and on the same 
date has requisitioned from it the total quantity and output of electrical 

32 



power which is capable of being produced and/or deUvered by said Com- 
pany through the use of all waters diverted or capable of being diverted 

through the intake canal of said Company and/or the plants 

or machinery of said Company connected therewith ; and 

"WHEREAS said Company has requested that it be 

permitted to carry on its business of production, importation, sale and 
distribution of such power as is or may be developed, generated or im- 
ported by it in whatever manner and to whatever extent may be deemed 
to be consistent with the exigencies of the national security and defense ; 
and 

"WHEREAS in the judgment of the Secretary of War such exi- 
gencies will be provided for adequately for the time being if the electrical 
power hereby ordered and requisitioned from said Company be sold by 

and for the account of said Company, and distributed by it 

in the manner shown in the attached schedule ; and 

"WHEREAS said Company has offered to waive all claim for com- 
pensation from the United States by reason of said order and requisition 
and/or the delivery of power under the conditions set forth in the schedule 
hereto attached, save as to such power as actually may be delivered to 
the United States. 

"NOW THEREFORE the Secretary of War, acting for and in behalf 
of the United States, hereby, until further notice to said Company, waives 
delivery to the United States of any of the power capable of being pro- 
duced and/or delivered by said Company, on the express condition that 
said Company shall distribute such power as provided in the schedule 
hereto attached. 

"Upon request of the Secretary of- War, or his duly authorized repre- 
sentative, said Company shall furnish a sworn statement 

showing the users of said power during any specified period, together with 
the maximum quantity of power delivered daily and the rate of compensa- 
tion charged to each user, and such other information as may be requested. 

"Said Company hereby waives any and all right to com- 
pensation from the United States by reason of said requisition and order 
and/or delivery of said power under the conditions hereinbefore imposed. 

"In witness whereof this instrument has been executed in duplicate 
on the twenty-eighth day of December, 1917, on behalf of the United States 
by the Secretary of War and the said Company has caused the same to be 
executed and its corporate seal attached by its President hereunto duly 
authorized. 



Secretary of War. 



COMPANY. 
By 



President. 



33 



SCHEDULE 

"The Company shall deliver all power, delivery of which 

Is waived by the United States as provided in the waiver attached, under 
existing contracts, to the persons now entitled to receive such power, 
except that delivery of electrical power to the following consumers shall 
be curtailed as herein indicated : 

" Co Reduced to 5100 H.P. 

" Co. No power between hours of 6 A. M. and 7.30 P. M. 

"Said Company shall use the additional power made 

available by increased use of water in its canal or by the curtailment 
herein prescribed or otherwise, to increase the amount of electrical power 
deliverable to the users named below, — it being the intent hereof that they 
shall receive respectively and continuously the approximate amounts of 
electrical power set opposite their respective names. 

" Company 13,500 H.P. 

" Company 7,000 H.P. 

" Company 13,500 H.P. 

"The foregoing table is based upon the ability of said 

Company to operate its plants and lines at full capacity and efficiency. 

"Whenever said Company shall have a surplus of elec- 
trical power above the requirements of its customers under the provisions 
of the foregoing waiver and this schedule it shall make distribution thereof 
to the customers on its lines in the following order of priority, viz. : 

(Naming companies) 

"In case of a deficiency in the supply of electrical power sold 

Company shall withdraw power first from consumers not 

named above and then from the several named customers in the inverse 
order of the foregoing list so far as the same may be done without undue 
damage to the plants and/or products of said several customers. There 
shall, however, be no curtailment of power deliverable to public utilities, 
or to small users employing an average of not to exceed 100 H.P. each until 
after all larger users shall have been curtailed as far as such curtailment 
may be effected without causing undue damage." 

The law under which this was done is as follows : 

"Sec. 120. PURCHASE OR PROCUREMENT OF MILITARY 
SUPPLIES IN TIME OF ACTUAL OR IMMINENT WAR.— The 
President, in time of war or when war is imminent, is empowered, through 
the head of any department of the Government, in addition to the present 
authorized methods of purchase or procurement, to place an order with 
amy individual, firm, association, company, corporation, or organized manu- 
facturing industry for such product or material as may be required, and 
which is of the nature or kind usually produced or capable of being pro- 
duced by such individual, firm, company, association, corporation, or or- 
ganized manufacturing industry. 

34 



"Compliance with all such orders for products or material shall be 
obligatory on any individual, firm, association, company, corporation, or 
organized manufacturing industry or the responsible head or heads thereof 
and shall take precedence over all other orders and contracts theretofore 
placed with such individual, firm, company, association, corporation, or 
organized manufacturing industry, and any individual, firm, association, 
company, corporation, or organized manufacturing industry or the respon- 
sible head or heads thereof owning or operating any plant equipped for 
the manufacture of arms or ammunition, or parts of ammunition, or any 
necessary supplies or equipment for the Army, and any individual, firm, 
association, company, corporation, or organized manufacturing industry 
or the responsible head or heads thereof owning or operating any manu- 
facturing plant, which, in the opinion of the Secretary of War shall be 
capable of being readily transformed into a plant for the manufacture 
of arms or ammunition, or parts thereof, or other necessary supplies or 
equipment, who shall refuse to give to the United States such preference 
in the matter of the execution of orders, or who shall refuse to manu- 
facture the kind, quantity or quality of arms or ammunition, or the parts 
thereof, or any necessary supplies or equipment, as ordered by the Secre- 
tary of War, or who shall refuse to furnish such arms, ammunition, or 
parts of ammunition, or other supplies or equipment, at a reasonable 
price as determined by the Secretary of War, then, and in either such 
case, the President, through the head of any department of the Govern- 
ment, in addition to the present authorized methods of purchase or pro- 
curement herein provided for, is hereby authorized to take immediate' 
possession of any such plant or plants, and through the Ordnance Depart- 
ment of the United States Army, to manufacture therein in time of war, 
or when war shall be imminent, such product or material as may be 
required, and any individual, firm, company, association, or corporation, 
or organized manufacturing industr}', or the responsible head or heads 
thereof, failing to comply with the provisions of this section shall be 
deemed guilty of a felony, and upon conviction shall be punished by 
imprisonment for not more than three years and by a fine not exceeding 
$50,000. 

"The compensation to be paid to any individual, firm, company, 
association, corporation, or organized manufacturing industry for its 
products or material, or as rental for use of any manufacturing plant 
while used by the United States, shall be fair and just." (Army Appro- 
priation Law June 3, 1916.) 

A similar power is contained in the Naval Appropriation Act, 
March 4, 1917, as respects ships of war and war material, which 
may include the taking over of any factory or part thereof, re- 
gardless of whether the United States has, or has not, any con- 
tract or agreement with the owner or occupier of such factory, 
but all authority contained in the Naval Appropriation Act is, by 
its terms, to cease on March 1, 1918. 



35 



Industrial Resources Division. The design of this newly 
created division of tlie War Industries Board is to find out the 
industrial capacity of the country and where economic or war 
needs have or are forcing a readjustment to aid in determining 
how such industry may be readjusted in the best possible manner. 

Essentials and Non-Essentials. Broadly speaking, it has 
come to be recognized that there is no such thing as a non-essential 
industry. It is true that for war purposes some industrial activ- 
ities are more necessary than others, yet either an immediate 
slacking, or considerable curtailment of almost any industry 
would mean an enormous wastage of capital with loss of organiza- 
tion and necessary labor unemployment. 

It may be confidently stated that no such thing as classification 
of industries, as essential or non-essential, is, or will be contem- 
plated by any responsible agency of the Government. 

Priorities Committee. This committee of the War In- 
dustries Board issues priority orders on application governing the 
precedence of the supply of raw materials entering into and the 
production of the finished product required by the Government 
on account of war activities. 

Priority in Transportation. The Chairman of the Priori- 
ties Committee of the War Industries Board is also the adminis- 
trative officer under the Priority of Shipments Law of August 10, 
1917, wherein the President was authorized to control priority of 
transportation "by any common carrier, by railroad, water, or 
otherwise" during the continuance of the war. 

This law authorizes the President "to direct that such traffic 
or such shipments of commodities as, in his judgment, may be 
essential to the national defense and security, shall have pref- 
erence or priority in transportation * * *." 

In carrying out this law all common carriers by railroad in the 
United States are ordered to 

"give preference and priority in car supply and in movement to the fol- 
lowing commodities, and in the order numbered : 

"1. Steam railroad fuel for current use ; 

"2. Live stock, perishable freight, food, and feed ; 

"3. (a) Shipments of military supplies when consigned direct to 
the United States Government or the authorized officers of the United 
States Army, Navy, or Shipping Board, or to the Allies or the proper 
representatives thereof, destined to any cantonment, post or encampment, 

36 



to any point of export for movement thence to Europe, to any arsenal 
or navy yard, or material to any shipbuilding plant under contract to the 
United States Shipping Board for the sole purpose of constructing vessels 
for that board ; structural material when consigned to Constructing Quar- 
termasters for account of contractors engaged in emergency construction 
work under the Cantonment Division of the Quartermaster General's Office 
(Order of December 22, 1917). 

"(b) Other shipments for the United States Government, as the 
same may be authorized from time to time by the undersigned as necessary 
in particular cases, but only upon request of the United States Army, 
United States Navy, or United States Shipping Board, through a desig- 
nated officer or representative of the respective departments located in 
Washington ; 

"4. Coal to and for by-product coking plants, and not subject to 
reconsignment ; and 

"5. Preference and priority in movement only to coal for current 
use but not for storage, consigned direct (and not subject to reconsign- 
ment) to hospitals, schools, and other public institutions, retailers of coal 
for use in supplying domestic consumers only; and to coal, coke, and raw 
materials for current use but not for storage, consigned direct (and not 
subject to reconsignment) to blast furnaces, foundries, iron and steel 
mills, smelters, manufacturers engaged in work for the United States 
Government or its Allies, public utilities (including street and interurban 
railways, electric power and lighting plants, gas plants, water and sewer 
works), flour mills, sugar factories, fertilizer factories, and shipbuilders; 
also shipments of paper, petroleum, and petroleum products. 

"This order shall not affect priority order No. 2, dated October 27, 
1917, relating open-top cars; priority order No. 3, dated November 2, 
1917, relating to movement of coal from mines in Utah and Wyoming; 
and priority order No. 4, dated November 22, 1917, and supplement A 
thereto, dated November 29, 1917, relating to shipments of cattle feed to 
points in Texas and New Mexico, issued by the undersigned." 

All Priority Orders Cancelled. The administrative officer 
of the Priority of Shipments Law under date of December 31, 
1917, issued a general suspension order, suspending all priority 
orders, which such officer had theretofore issued, until further 
notice. 

While not so stating, it is understood that this action was 
taken in view of the appointment of a Director General of Rail- 
roads. 

Commercial Economy Board — This Board, by studies and 
cooperation secured from manufacturing trades, endeavors to 
secure economy in the use of men and materials in commercial 
business as an aid to war requirements. 

37 



Naval Consulting Board — This Board was established by the 
Secretary of the Navy and consists of twenty-four eminent tech- 
nical experts, and, under the law of August 29, 1916, is engaged 
in the work of initiating ideas useful to the national defense and 
in the solution of technical problems presented by the Navy 
Department, and serves for the Council of National Defense as 
a board to consider inventions. 

National Research Council — The National Academy of 
Sciences, operating under a Congressional charter, has created a 
National Research Council which, by resolution of the Council 
of National Defense, is cooperating with it in matters pertaining 
to scientific research having relation to national defense. This 
organization is supported entirely by private contributions. 

Bureau of Mines — Under the provisions of a law of October 
6, 1917, the Director of the Bureau of Mines, Department of 
Interior, is authorized, v/hen the United States is at war, to grant 
manufacturer's, vendor's, purchaser's, foreman's, exporter's, im- 
porter's, analyst's, educator's, inventor's and investigator's several 
and separate licenses controlling the manufacture and use of ex- 
plosives. It is made an offence to manufacture explosives unless 
licensed so to do. 

If an applicant for license has his application denied or the 
holder of a license has his license revoked by the Director, he 
may, within thirty days, apply for such license or the cancellation 
of such revocation to the Council of National Defense, which 
shall make its order upon the Director of the Bureau of Mines 
either to grant or to withhold the license. The law provides 
detailed requirements for the keeping and handling of explosives 
in times of war. 



38 



Government Purchasing Offices in Washington 

The Bureau of Foreign and Domestic Commerce of the De- 
partment of Commerce has prepared a directory of offices in 
Washington making Government purchases, which directory fol- 
lows : 

Emergency Fleet Corporation (Shipping Board), 
Munsey Building. 

Boilers and Machinery other than electrical — A. L. Bell. 

Electrical Apparatus and Machinery — W. R. McCann. 

Anchor Chain, Wire Rope, Hemp Rope, Nautical Instruments, Mis- 
cellaneous Equipment and Supplies — J. P. Bourke. 

Raw and semi-finished material on which Government expects to have 
prices fixed — G. R. Jasper. 

Lumber — Southern Pine and Oregon Fir — F. K. Fawcett. 

Lumber — Hardwoods — F. K. Paxton. 

Inspection for material purchased by Purchasing Department only — 
E. A. Rebbeke. 

Contracts and Specifications — T. D. Adams. 

War Department 

Engineer Corps 

In charge of Purchase, Major Rose, 1438 U Street. 
Railway Equipment and Supplies — S. M. Felton, 734 15th Street. 
Electrical Equipment— Capt. S. D. Miller, 1419 F Street. 
Mechanical and Miscellaneous — Capt. O. M. Zimmerman, Winter 
Building, U Street. 

Chief of Ordnance 

Carriage Division 

Lieut.-Col. J. H. Rice, Room No. 139, State, War, and Navy 
Building. 

Field Artillery Section — Field Artillery material except guns and 
ammunition, Lieut.-Col. L. T. Hillman, 18th and E Streets, N. W. 

Seacoast Artillery Section— Seacoast material and railway 
mounts and equipment, except guns and ammunition, Major J. B. 
Dillard, 18th and E Streets, N. W. 

Machine Gun Section — Machine guns and automatic guns and 
equipment, except ammunition. Major E. McFarland, 6 and B Street. 

Motor Equipment Section — All motor equipment for field ar- 
tillery tractors, ammunition trucks, tanks, etc.. Major L. B. Moody, 
6 and B Street. 



39 



Anti-Aircraft Section — All anti-aircraft mounts and equip- 
ment, except motor equipment, guns and ammunition. Major J. B. 
Rose, 18th and E Streets, N. W. 

Equipment Division 

Major J. R. Simpson, Hooe Building, No. 1330 F Street, N. W. 

Cotton and duck webbing. 

Cloth equipment made of cotton duck and webbing, such as 
haversacks, pack carriers, cartridge belts, intrenching tool carriers, 
paulins, grain bags, feed bags, etc. 

Equipment made of leather, such as saddles, bridles, halters, 
bayonet scabbards, rifle scabbards, pistol holsters, belts, etc. 

Mess equipment, such as canteens, meat cans, bacon cans, knives, 
forks, and spoons. 

Hardware, such as intrenching tools, picks, shovels, wire cutters, 
stencil outfits, marking outfits, etc. Also small hardware parts to 
be used in connection with cloth and leather equipment — such parts 
consist of snaps, hooks, buckles, eyelets, grommets, etc. 

Cleaning and preserving materials, such as sperm oil, neatsfoot 
oil, soaps, sponges, ammonia, amonium, carbonate, etc. 

Steel helmets, including helmet linings and eye guards. 

Fencing equipment, including fencing plastrons, gloves, masks, 
wooden fencing masks, and wooden sabers. 

Periscopes, trench knives. 

Woolen horse blankets, horse covers. 

Instruments of precision, such as musketry rules. 

Gun Division 

Col. Jay E. Hoffer, B Street and Virginia Avenue, N. W. 

Artillery Ammunition Section — Lieut.-Col. E. P. 
O'Hearn — Artillery ammunition of all description from 3 
in. to 16 in. in caliber, armor piercing projectiles, com- 
mon steel shell, shrapnel, all types of fuses, primers, fuse 
setters, all accessories therefor, including paints, con- 
tainers, packing boxes, etc. 

Cannon Section — Major C. C. Jamison — Cannon of 
all character from 3 in. to 16 in. (but this section DOES 
NOT handle small arms, machine guns, carriages or 
mounts for cannon), forgings for cannon breech mechan- 
ism, firing mechanism. 

Explosives Section — Major J. H. Burns — Smokeless 
powder for small arms and cannon, black powder, high 
explosives of all kinds, raw material used in the manu- 
facture of powder and explosives. 

Trench Warfare Section — Capt. E. J. W. Ragsdale — 
Hand grenades, chemicals used for illuminating, incend- 
iary and asphyxiating purposes, rifle grenades, aerial 
bombs, trench mortars. 



40 



Raw Materials — Major Douglas I. McKay — Materials 
used in manufacture o£ ordnance material used by this 
division : Steel, copper, spelter, lead, antimony, etc. 



Division ''T" 



Col. J. W. Joyes, Room 209 National Savings and 
Trust Building, No. 719 15th Street. Supplies used in the 
manufacture of ammonia and acids, in purifying and 
compressing gases. 

Small Arms Division 

Col. John T. Thompson, No. 1801 I Street, N. W. Small arms 
rifles, automatic pistols, revolvers, sabers, scabbards, bolos, bayonets, 
shot guns, small arms ammunition, targets, target material, marks- 
men's insignia. 

The above mentioned articles are being purchased by the Small 
Arms Division only in their completed state. 

Purchase Section — Lieutenant Byland, 1829 I Street. Com- 
ponents entering into the manufacture of small arms are being- 
procured by the Purchase Section of the Small Arms Division. 

An illustrative list of such components follows : 



Steel (not allotted by Govern- 
ment) 
Brass rod cleaners 
Rivet wire 

Screw bracket butt plate 
Butt plates 
Cleaners bristles 
Cord 

Black walnut stocks 
Thong case and caps 
Thong cord and bristle brush 
Emery and emery wheels 
Carborundum wheels 
Bortz 

Sling straps 
Scabbards 
Drills 

Screw drivers 
Oil 
Lard 
Mineral 

(Not allotted by Government) 
Sulphuric acid 
Cotton waste 



Chlorate of potash 

Lead sulphocyanide 

Antimony sulphide 

Tri-nitrotolunen 

Manganese copper 

Clip board 

Packing cases 

Deadening felt • 

Crucibles 

Bandoleers 

Clips 

Coke 

Newsboard 

Solder 

Charcoal 

Screw hooks and thumb nuts 

Varnish coating 

Iron screws No. 13, 2 in. 

Wire nails, 8 penny 

Shellac 

Soda ash 

Rosanaline 

Alcohol, denatured 

Terne plate 



41 



Signal Corps 

Aircraft Division 

Old Southern Ry. Bldg, 119 D Street, N. E. 

Motors and Parts — Lieut. H. H. Emmons. 

Planes — H. L. Shepler. 

Ordnance and Instruments for Signal Corps — L. S. Horner. 

Woods, etc.— Major C. R. Sligh. 

General Equipment — Capt. H. D. Moore. 

Quartermaster General 

No purchases are made by officers on duty in the office of the 
Quartermaster General, but authority for making purchases is given 
by the various divisions to the depot quartermasters, constructing 
quartermasters, department and other quartermasters at various mili- 
tary posts and stations to purchase materials and hire labor or enter 
into contracts for supplies as follows : 

Supplies Division 

State, War, and Navy Building. Officer in charge, Brig. -Gen. 
A. L. Smith, Q. M. Corps. 

Assistants : Lieut. -Col. William E. Horton. Fuel, forage, 
specifications for uniforms, etc. 

Lieut.-Col. George H. Penrose : Miscellaneous supplies, such 
as typewriters, adding machines, printing outfits, stationery, office 
furniture, field ranges and field ovens. 

Transportation Division 

Officer in charge, Col. C. B. Drake, Q. M. Corps. 

Colonel Drake is in charge of Motor Transportation — Automo- 
biles, motor trucks, motorcycles, bicycles, tractors, trailers, tires, oils 
and greases for same ; also in charge of water transportation- — 
supplies except subsistence, in connection with the transport and 
harbor boat service. 

Assistants: Major J. S. Fair in charge of Remount Service — 
wagons and parts, horse drawn ambulances, carts, saddles, harness, 
harness parts, stable equipment, and the like. 

Capt. H. A. Hegeman, in charge of Transport Repair Shops 
— Machinery and equipment for repair shops being organized for 
service abroad. 

Major C. M. Curran, in charge of Rail Transportation — all 
kinds of railroad equipment, repairs, etc., after installation. 

Major J. W. Furlow, in charge of engineering features of Mo- 
tor Transportation — in connection with testing of motor trucks with 
the view of standardization. 



42 



Cantonment Division 

15th and M Streets. Officer in charge, Brig.-Gen. I. W. Littell, 
Q. M. Corps. 

Assistant : Captain R. C. Marshall, Jr. This division has charge 
of constructing the National Guard camps and National Army can- 
tonments, and of the purchase and installing of material required 
to complete such camps and cantonments. 

Construction and Repair Division 

15th and M Streets. Officer in charge, Major C. O. Zollers, 
Q. M. Corps. 

Supplies in charge of this division are as follows : 

Barracks, quarters, storehouses, etc. 

Plumbing, heating and lighting in new buildings. 

Fences. 

Post bakery ovens. 

Gymnasiums, bowling alleys, etc. 

Shooting galleries and ranges. 

Rentals, including recruiting stations and lodgings. 

Permanent picket lines. 

Flagstafifs. 

Heavy furniture for officers' quarters. 
' Wall lockers. 

Track and wagon scales. 

Refrigerators. 

Drafting and surveying instruments. 

Power plants, including lighting, heating, refrigerating and 
pumping. 

Laundries, crematories, etc. 
Electric lighting systems. 
Purchase of light. 
Incandescent lamps. 
Field laundries. 
Installation of elevators. 
Saw mills and saw mill equipment. 
Steam cooking appliances. 

Moving picture machines and equipment, including folding or- 
gans, chairs and tables. 

Assembly tents and chaplains' equipment. 
Wharves, sea walls and retaining walls. 
Dredging. 
Purchase of water. 



43 



Roads and walks. 

Water-distribiUing systems. 

Crematories, incinerators and odorless excavators. 

Sewerage systems and purification plants. 

Railroad rolling stock and equipment — first installation. 

Drainage. 

Care and improvement of grounds. 

Railway on reservations. 

Time and fire-alarm systems. 

Water systems. 

Fire apparatus. 

Navy Department 

Bureau of Ordnance 

New Interior Bldg., 18th and F Streets, N. VV. 

Matter of Policy — Rear Admiral Ralph Earle, Chief of Bureau. 

Reciuisition for Material for all Yards and Stations — Commander 
T. A. Kearney, Asst. Chief. 

Office Supplies — E. S. Bradt, Chief Clerk. 

Guns and Breech JMechanisms — Lieut. N. W. Pickering. 

Turret Mounts, Recoil Springs — Lieut. L. S. Bye. 

Powder and Fuses — Lieut. G. L. Caskey. 

Torpedoes — Commander T. V. Ogan. 

Armor and Projectiles — Lieut. Com. R. S. Holmes. 

Supplies (Ships) — Lieut. Com. W. T. Lightle. 

Inventions — Rear Admiral R. R. Ingersoll. 

Fire Control — Optical Instruments, Range Finders, Binoculars — 
Lieut. Com. W. E. Van Quken. 

Mounts (other than Turret) and Small Arms — Lieut. Com. S. C. 
Rowan. 

Mines and Mining; Wire Ropes — Comdr. S. P. Fullinwider. 

Member of Priority Board — Rear Admiral N. E. Mason. 

Armor and Projectile Plant, to be Constructed at Charleston, 
W. Va.— Comdr. F. H. Clark. 

Experiments — Lieut. T. S. Wilkinson. 

General Inspector — Comdr. A. L. Norton. 

Bureau of Supplies and Accounts 

State, W'ar, and Navy Building. Admiral Samuel McGowan, 
Paymaster General. 

Bureau of Yards and Docks 

Navy-Army, New York Avenue. A. L. Parsons, Acting Chief. 

44 



LIBRARY OF CONGRESS 



TREASURY DEPARTMENT 020 915 876 

OFFICE OF 

COMMISSIONER OF INTERNAL REVENUE 

WASHINGTON, D. C. 



January 1, 1918. 



TO AMERICAN MANUFACTURERS: 

I am glad to have this opportunity of expressing to the 
members of the National Association of Manufacturers my 
appreciation of the helpful cooperation extended to the Bureau 
of Internal Revenue. 

Your prompt response to our request for advice and sug- 
gestions was particularly gratifying and has materially aided 
in interpreting the law in the light of actual conditions. 

The law presents many difficult problems. It imposes 
taxes that are new and untried. The volume of revenue to 
be raised is more than three times the total annual expend- 
iture of the Government in times of peace. A task of this 
magnitude can be accomplished through sympathetic coopera- 
tion between the Governm.ent and the taxpayers. 

The Internal Revenue officers are your servants. It is our 
function and desire to assist you and your employes in the 
preparation of returns and to help you solve your tax prob- 
lems. Thousands of your employes must make returns and 
for the first time pay an income tax. May I count on your 
cooperation in aiding those in your employ who are unfamiliar 
with tax laws? 

You can render no greater service to the high cause for 
which this nation is devoting its lives and its wealth, than to 
maintain the leadership so patriotically assumed in supplying 
the sinews of war. The Liberty tax is on a par with the 
Liberty Loan. Its purpose is the same; it will be met in the 
same spirit. 

(Signed) ^-/\K 

Commissioner of Internal Revenue. 




